The Income Tax and VAT are administered by the Minister of Finance via the office of the Commissioner for Inland Revenue in Windhoek, who is also responsible for the administration of Stamp and Transfer Duties.

Financial Environment

Namibia has a well-established banking system, which is controlled by legislation and by state agencies working through the Bank of Namibia. The Banking Institutions Act passed into law in 1998 provides the legal framework for banking operations in Namibia and is designed to ensure international acceptability. To deepen the range of financial services in Namibia, an Offshore Banking Act as well as legislations governing the conduct of other offshore financial services has been put in place. As a member of the Rand Common Monetary Area (CMA), however, Namibia continues to be subjected to CMA foreign exchange regulations as are South Africa, Lesotho and Swaziland.

Commercial Banks

Commercial banks in Namibia operate through a nationwide network of branches and offer a comprehensive range of banking services, including current account and overdraft facilities, term deposits, discounting of bills, foreign exchange and a variety of loan products. General banking facilities such as hire purchase and leasing packages are also available and most of the commercial banks are capable of providing specialised merchant banking facilities. Branches of banks can be found in most towns in Namibia with agencies in the smaller centres. International services are available through interbank arrangements while electronic banking and teller services are available in all major centres.

The banks are connected to major international communication networks, ensuring fast and efficient transfers of funds to and from other centres in the world.

The Agribank of Namibia assists the domestic agriculture sector in the country, while the Development Bank of Namibia assists small and medium size business enterprises.

The Namibian Stock Exchange

The Namibian Stock Exchange (NSE) commenced operations in October 1992 and is the second biggest in SADC in terms of total market capitalisation.

Computerised screen trading was adopted from its inception, and the Namibian Stock Exchange was the first exchange in the Southern African Development Community (SADC) to take up the Johannesburg Stock Exchange’s offer to make use of its electronic trading system (JET system) in November 1998. The link-up should be seen in the context of plans by the stock exchanges of the SADC region to establish closer links and achieve greater integration by linking the region’s autonomous stock exchanges.

Repatriation of Capital

The local sale or redemption proceeds on non-resident owned assets in Namibia may be regarded as freely remittable or be used freely by non-residents for investment purposes within the CMA.

EPZ Enterprises

EPZ enterprises operate outside the normal foreign exchange regime in Namibia. To address their foreign exchange and operational requirements, two types of banking accounts have been tailor-made to the needs of enterprises operating in the Namibia EPZ.

These are:

EPZ Customer Foreign Currency Account

To facilitate the foreign currency disbursements of EPZ enterprises. This account is kept in foreign currency in a local bank.

EPZ Non-resident Account

This is a Namibia dollar account funded with foreign currency and used for the normal operational requirements / expenditure of EPZ enterprises. Balances on this account are freely convertible.